As much as the construction industry seems to be thriving with home owners working from home and having more time to plan and execute renovations, the industry is still trying to recover from shortages in almost all notable materials.
Over the last year of the COVID-19 pandemic the want and cost of lumber has absolutely soared to unheard of levels. Plywood, for example, is the latest victim of the increase in pricing for materials. In March of 2020, just before the first global shutdowns, one sheet of plywood was valued at $38 CAD. Fast forward 14 months later to June 2021 and the same sheet of plywood is valued at $96 CAD. That’s an increase of 252%. Percentages the industry has almost never seen. Especially in such a short time frame. Now don’t panic too quickly as some experts believe the price will start to decline again in the second half of this year into Q4. However, if you’re thinking of continuing to hold off your dream kitchen or building that new deck, think again. It could be years before the pieces return to any resemblance of normalcy.
Now why are the prices of these materials so high? Experts can’t pinpoint exactly what the issue is. There’s an obvious rise in families wanting to renovate their homes with the down time and extra cash from no extracurriculars. It’s almost safe to say that all roads lead to the supply simply just doesn’t match the demand. There was also a complete shutdown of mills in Canada for a brief period of time back in March of 2020. That is most likely what had started the ripple effect.
One thing is for certain, we find ourselves in quite unprecedented and interesting times.